Digital sector gets Budget boost
TEN core cities including Leeds and Bradford are to share in a £100m pot for superfast broadband, the Chancellor announced.
And in another boost to the digital and video industries, Mr Osborne said tax breaks would be extended to video game companies, and those working in high-end animation and TV production.
Saying he wanted to ensure “Wallace and Gromit stay in the UK”, the chancellor introduced tax reliefs first promised by his Labour predecessor but never delivered. The gaming industry had lobbied hard for the incentives in the face of growing competition from Canada and Ireland, whose tax regimes were encouraging many multi-million dollar computer game firms to relocate their development hubs.
Other cities to benefit from the accelerated broadband rollout include Manchester, Birmingham and Bristol, and there would be a further £50m pot created to help smaller cities reach for the superfast connectivity.
Mr Osborne said: “The film tax credit helped generate over £1 billion of film production investment in the UK last year alone.
“Today I am announcing our intention to introduce similar schemes for the video games, animation and high-end TV production industries.
“To be Europe’s technology centre we also need the best technology infrastructure. Our plans will deliver some of the fastest broadband speeds in the world. The fastest digital speeds in the world available in our cities, with the most connected countryside in Europe – and the most creative digital content anywhere.
“That’s what a modern industrial policy looks like.”
Coun Keith Wakefield, leader of Leeds City Council, said: “I am very pleased that we have been successful in our joint bid to become one of the first super connected cities. This funding will enable us to accelerate the transformation of our cities, putting in place digital connections amongst the best in Europe.
“This will be a major attraction to business and will help in attracting further investment to both cities to support our economic growth ambitions.
Coun Ian Greenwood, leader of Bradford Council, said: “I very much welcome today’s announcement. Creating a super-fast broadband network will be essential to ensure our businesses are able to take advantage of the opportunities of enhanced digital connectivity and remain competitive. This will support jobs in Bradford and the wider city region in coming years.”
